Ssangyong Motor Avoids Stock Market Delisting... Exchange Grants Improvement Period Until Year-End

Improvement Period Granted Until December 31 This Year
Trading Suspension Continues

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] Ssangyong Motor, which was on the verge of delisting, has made a comeback.

On the 13th, the Korea Exchange held a meeting of the Listing Committee for the KOSPI Market and announced that it decided to grant an improvement period until December 31 of this year after reviewing whether to maintain listing eligibility. The trading suspension status will continue.

Ssangyong Motor faced delisting due to a disclaimer of opinion on the 2020 fiscal year audit and was granted a one-year improvement period last April. After the improvement period ended, Ssangyong Motor submitted a request for review on the implementation of the improvement plan to the Exchange on the 25th of last month. Ssangyong Motor also received a disclaimer of opinion for the 2021 fiscal year audit and separately submitted an objection to the Korea Exchange. Accordingly, the Exchange decided to merge the two cases for review and grant an improvement period.

On the same day, Ssangyong Motor announced that the KG Consortium was selected as the new owner. This came 47 days after the acquisition by the Edison Motors Consortium fell through.

Since the resale of Ssangyong Motor is proceeding through a "stalking horse" method, it is highly likely that the KG Consortium, selected as the prospective buyer, will be chosen as the new owner. The stalking horse method involves selecting a prospective buyer, signing a conditional investment agreement, and then conducting a public auction. If a new bidder offers a higher price, the prospective buyer receives the bid and a competitive auction takes place.

Ssangyong Motor plans to announce the sale in June and receive letters of intent (LOI). It aims to sign the main contract as early as early July and then submit a rehabilitation plan to the court. The court's approval is expected by August at the latest.

This content was produced with the assistance of AI translation services.